Connectivity is a prerequisite for regional economic cooperation and integration, as well as a cornerstone of good neighbourly relations. It is therefore important to improve regional transport and energy infrastructure in the Western Balkans.

This project contributes to the establishment of a Western Balkans regional electricity market through the creation of a 400 kV transmission corridor between Montenegro, Serbia and Bosnia and Herzegovina, which is also known as the Trans-Balkan Electricity Corridor.

The investments in Montenegro comprise the construction of a new 400 kV transmission line from Lastva to Pljevlja and then to the border with Serbia, including the construction of a new substation in Lastva, the grid connection from the Lastva substation to the existing 400kV Podgorica-Trebinje line, and the upgrade of the 400/220/110 kV substation in Pljevlja. The project includes the cost of dismantling the existing 220 kV overhead lines between the Pljevlja substation and the Montenegro-Serbia border.

The planned investments are expected to normalise voltage levels, stabilise load flows and frequency fluctuations, and decrease technical losses in the overall transmission system. Moreover, the Montenegrin power system will be integrated into the wider European energy market, as the corridor will be further linked to the European Union via the Italy – Montenegro submarine cable.